Home purchase?

Hello,

I'm trying to decide if buying a home is the right move. If I stay in Milwaukee at least three more years, perhaps it would be nice to really settle in somewhere. Although I did get an apology from my landlord over the whole accusing Lily of being the one who brought fleas into the building (btw, we are both flea-free and have been the whole time!), it really kinda turns me off of renting again. That, and the rates near UWM make it nearly impossible to live on my own. I'd either have to find a roommate to share the rent and utilities, downsize drastically, or move further out. I looked on Craigslist to check out some other alternatives. I've found two that I believe hold some promise. Both are in Riverwest, just west (and across the river) from UWM. I'd still need a roommate (or in case of the house, I'd need two) and I've got to work on getting some quotes for loan rates and insurance. However, if either/or check out, I'd really be interested in settling down sometime in the near-future...

The House:
http://milwaukee.craigslist.org/reb/1527815037.html
$89000 / 3br - 606 E Locust (Milwaukee)
Date: 2009-12-28, 2:28PM CST

Great quirky 3 bedroom bungalow in Riverwest. Pottery Barn inspired living and dining room, great you as you enter the 1st floor. Lots of wide plank hardwood flooring on the 1st floor. Finished basement and master suite in attic makes every inch of this house livable. Fenced in back yard.

Mortgage Calculator
Mortgage amount: $ 90,000
Mortgage term: 25 years
Interest rate: 7 % per year
Monthly Payments: $637
If I could rent out the master suite to someone for $300-$400/mo and get the other roommate to cover utilities, I would cover $200-$300 in mortgage plus insurance and taxes.

The Duplex:
http://milwaukee.craigslist.org/reo/1521293529.html
$139000 / 4br - Terrific 2/2 Duplex For Sale by Owner 614 E. Meinecke Ave (Riverwest)
Date: 2009-12-22, 12:06PM CST

Very Spacious 2/2 Duplex For Sale by Owner in Riverwest neighborhood. The upper unit has 2-BDRM and 1 full bathroom, hardwood floors throughout, 2 spacious bedrooms, fully remodeled bathroom, remodeled kitchen with new appliances, living room, seperate dining room with leaded glass china cabinets, walk-in pantry off kitchen, access to balcony and plenty of storage. The lower unit also has 2-BDRM and 1 full bathroom, newer kitchen, new appliances, hardwood floors throughout, built in china cabinets, good size living room, large dining room and large front porch. This property also has a full, walk-up attic which presents many opportunities to the creative homebuyer! Fully accessible and clean basement to use for storage, hobbies etc. Property also has a driveway for off-street parking...very rare in this neighborhood! Conveniently located on a major city bus line. This is a great opportunity for owner occupied or investor. Live upstairs and rent out the downstairs! Very strong rental history and cash flow on this property.

Mortgage Calculator
Mortgage amount: $ 140,000
Mortgage term: 25 years
Interest rate: 7 % per year
Monthly Payments: $990
If I could rent out the downstairs to someone for fair-market $700/mo (with some utilities included, like wireless internet) and get my roommate to cover utilities, I would cover $300 in mortgage plus insurance and taxes.

There are a couple positives to both properties, including location near UWM and near major buslines to get there. There also appears to be off-street parking available at both places. They are in the "good side" of Riverwest and would most likely retain their resale value. They have also had some upgrades and would be move-in ready.

Am I crazy??
On the plus side, I'm finally reunited with Lily after two full days and two half days without her. She's indicating that it is close to bedtime. Oh how I've missed her!

I went to Jason's game tonight. Although he was a bit under the weather and his team lost, it was still fun to go. I'm happy to say that although I left WAAAAAY later in the day than I intended due to a brand new cold, I made it to Argyle in record time.
Lots of love,
Christi and Lily (with sleeping Mom, Buddy, and Daisy)